How to write a 

business plan

What is business plan and why it is important in Horizon 2020?

Innovations are a new element in Horizon 2020. Innovation is the engine of development and as such European Commission
has decided to increase innovation development support in Horizon 2020. By coupling research and innovation, Horizon 2020 is
helping to achieve this with its emphasis on excellent science, industrial leadership and tackling societal challenges. The goal is to
ensure Europe produces world-class science, removes barriers to innovation and makes it easier for the public and private sectors
to work together in delivering innovation.

Definition: A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them.
It may also contain background information about the organization or team attempting to reach those goals.

In Horizon 2020, major elements of business plan can be found in all project proposal templates. You have to prove that your re-
sults and your solution are viable, repeatable and, especially, bringing profit. In business, you have to convince investors that your
plan is worth investing, in Horizon 2020 you have to convince evaluators that your project is worth funding, too.
As Horizon 2020 is more business and innovation-oriented than previous 7th Framework programme, expert evaluators need to
take into account also a viability of your project idea. One of the most often mistakes in project proposal according to evaluators is
that project is not enough “business-oriented”.

In Horizon 2020 most business oriented types of project are SME Instrument, Fast Track to Innovation and Innovation action. Gen-
erally, higher Technology Readiness Level (TRL) means more business- oriented project. These types of action consist mostly from
close-to-market activities (TRL 6 till TRL 9).

Structure of business plan vs. structure of proposal template

Business plan should give answers to following questions:

• What → solution • When → plan

• Who → partners • How → strategy
• Where → markets and users • How much → financing

The business plan in Horizon 2020 mainly provides an insight of the activities connected to exploitation of research results during
the project or after its conclusion. Business plan can be a part of a project proposal when explicitly mentioned in topic. Then it is
included in criterion 2 – Impact, part 2.2 (Measures to maximise impact). For FTI and SME Instrument substantial part is also cov-
ered in part 2.1 (Market / Company). Further business related information may be provided in part 4 (Members of the consor-
tium) of the proposal without page limits. It is not a separate document and should fit within page limit. The business plan in this
sense should describe how the consortium intends to use results of activities carried out during the project or after the project.

Basic content structure of business plan should cover:

yy the planned key exploitable results and their expected key areas of applications
yy the exploitation team
yy the market
yy the business model
yy the financial projections TIP
yy the commercialization roadmap
Business plan elements can also be located
yy the risk assessment
in different sections of the proposal template
(impact, implementation, exploitation etc.),
even though there is no specific mention in
topic outline. When writing a proposal you
should take into consideration what part of
Warning: for each type of action there is different your project should be more business-oriented
template with different requirements for business- oriented scope. and reflect it in your proposal.
Always use correct template and follow the instructions.
Business plan What should business plan cover? Where is it reflected in proposal template (in general)?

• Description of solution, previous  part B – 1. Excellence – 1.1 Objectives and 1.3

activities and further product devel- Concept and methodology
What? opment
Solution  part B – 1. Excellence – 1.4 Ambition
• Comparative analysis of existing
solutions
• Partners who will share results  part B – 3. Implementation – 3.3 Consortium as
whole and 4. Members of the consortium
• IP protection and exploitation
Who? Partners  part B – 2. Impact – 2.2 Measures to maximise
• Characteristic of expected growth
impact
 part B – 2. Impact – 2.1 Expected impacts
• International dimension  part B – 1. Excellence – 1.3 Concept and
Methodology
• Description of target market
Where?  part B – 2. Impact – 2.1 Expected impacts
• Life cycle assessment
Market
 part B – 2. Impact – 2.1 Expected impacts
and users • Economic impact assessment
 part B – 2. Impact – 2.1 Expected impacts
• Identify end users
 part B – 2. Impact – 2.1 Expected impacts
• Exploitation of results during and  part B – 2. Impact – 2.2 Measures to maximise
When? after project impact
Plan
• Time table with milestones  part B – 3. Implementation – 3.1 Work plan
• Strategy of IP protection  part B – 2. Impact – 2.2 Measures to maximise
impact
• Risk analysis
 part B – 3. Implementation – 3.2 Management
• Used marketing tools
structure, milestones and procedures
How?
• Methodology, models and assump-
Strategy  part B – 2. Impact – Measures to maximise impact
tions
 part B – 1. Excellence – 1.3 Concept and
• Overall strategy of production, sub-
methodology
contracting, sales and marketing
 part B – 2. Impact – Measures to maximise impact
• Forecast sales, turnover, market  part B – 2. Impact – 2.1 Expected impacts
shares
How much?  part B – 2. Impact – 2.1 Expected impacts
Financing • Other sources of financing
 part A – 3 Budget for the proposal
• Financial plan

Do´s and don´ts in business plan

• Do a proper market research!
HELPDESK
• Analyse your strengths and weaknesses! Technology Readiness Level TRLs on
• Use quality background materials! Participant Portal
• Reserve enough time to find key elements and facts Annotated proposal templates
to create a business plan! for individual types on action on
Participant Portal
• Identify and research your potential clients!
• Quantify!
Don’t forget to discuss your project
• Be specific! proposal and rules of participation
• Don’t overestimate financial possibilities in creating with your NCP
financial concept!
• Make a difference from other products and companies!
• Be innovative when presenting your innovation!